Sept Corn closed 17 ¾ cents lower ($5.40 ¼), Dec 11 cents lower ($5.42 ¾) & March 9 ½ cents lower ($5.50 ¾)
Weekly Corn Export Inspections – 562.5 K T. vs. 600-800 K T. expected
Corn Crop Progress & Condition – 60% GE (unch) vs. 59% expected vs. 62% year ago – Dented – 59% vs. 55% 5-year ave – Mature – 9% vs. 10% 5-year ave
After trying to firm Sunday night flat price corn hit the bricks during the Monday session. At one point during the day Dec corn was down as much as 17 cents. The September contract goes into delivery tonight and losses during the day were severe. At one point Sept corn was down as much as 26 ½ cents. Just how much of the Sept’s losses are in response to the damage at the Gulf from Hurricane Ida remains to be seen. This weighed on the new crop as did the slow weekly export inspections. Ideas that recent rainfall across much of the corn belt is aiding potential yield. Month end considerations are adding to some of the selling pressure. New crop spreads were widening during the day’s break reflecting the idea of a bigger supply and demand not keeping up.
It is my thought going forward we are going to see a higher national corn yield vs. what the USDA gave us earlier this month. As of this writing my thought is 176.5 to 177.5 bpa. Unless we start to see improving demand I have to think Dec corn will be trading down towards the $5.20-$5.10 level sooner vs. later.
Daily Support & Resistance – 08/31
Dec Corn: $5.30 – $5.49
March Corn: $5.38 – $5.57
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